Digital services and digital trade in the Asia pacific: an alternative model for digital integration?

Abstract

ABSTRACT This article explores digital integration in the Asia Pacific through a comparative analysis of four preferential trade agreements (PTAs): (i) the Comprehensive and Progressive Trans-Pacific Partnership Agreement (CPTPP); (ii) the Regional Comprehensive Economic Partnership Agreement (RCEP); and two-digital only agreements: (iii) the ASEAN Ecommerce Agreement; and (iv) the Digital Economy Partnership Agreement. This article argues that although Asia/ASEAN-led PTAs such as RCEP and ASEAN E-Commerce Agreement appear less ambitious at first sight, when compared to digital trade chapters in PTAs led by western states such as the CPTPP, they are both relevant and appropriately suited to foster digital trade integration in the region. Viewed from the perspective of New Asian Regionalism, these agreements contribute substantially to the global economic order by leveraging the collective power of the Asia-Pacific through a pragmatic, incremental approach. By combining soft law mechanisms with specific legal obligations, these PTAs have better-addressed variations in digital development levels and policy preferences across countries, eventually leading to meaningful consensus-building and long-term engagement in complex areas of digital regulation.